It's no secret that EA
has financially underperformed for the past two years, with seasonal sales last year alone slipping 25%. The CEO of EA
, John Riccitiello, has acknowledged that the performance of the company under his direction has been poor to date, and that steps had to be taken in order to correct this.
In light of this, it now looks like EA
are shaping up a new aggressive form of sales strategy to boost revenue, by changing the way in which digital content is delivered to users of Xbox LIVE
Nick Earl laid out plans to investors at a conference today of plans to implement a PDLC (Premium Downloadable Content) initiative, which he stated would work similarly to Battlefield 1943
In essence EA
would release an item of PDLC priced at around $10-15 as a stand alone product downloadable to the console. "A full-blown packaged game would follow shortly after the release of the PDLC, bearing a full retail price" explained Nick Earl.
Confused? The best way to imagine the scenario is like this:
- GTA IV's The Ballad of Gay Tony is released as standalone
PDLC prior to GTA IV being available to buy.
- In the weeks following GTA IV is released as a full product (complete with price tag) and simply 'bolts on' to the PDLC you've purchased.
If this came to fruition then you'd be paying for the 'demo' you previously downloaded for free to evaluate whether you wanted to spend your hard earned (and often limited) cash on the full product.
This strategy is already drawing fire from gamers across forums and blogs on the internet. Opinions anyone?UPDATE: Speaking in an exclusive interview with Kotaku, EA have clarified their position on their proposed new business model:
"[We are working] on a number of projects for delivering premium content to consumers before, during, and after the launch of a packaged-goods version of the game."
"To date, there is no set pricing strategy for the entire EA portfolio. And many of the proposals include free-to-play content on models similar to Madden Ultimate Team, Battlefield Heroes and Battlefield 1943."
"None of the proposals call for charging consumers for traditionally free game demos."